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3454. Towards an optimum carbon backbone: A Bilevel Model Approach for Efficient CO2 Pipeline Design and Price Policy in Germany

Invited abstract in session WA-19: Towards sustainable development, stream OR in Energy.

Wednesday, 8:30-10:00
Room: 44 (building: 116)

Authors (first author is the speaker)

1. Vladimir Stadnichuk
Lehrstuhl für Operations Managemnt, RWTH Aachen
2. Stephan Bogs
School of Business and Economics, Chair of Operations Management, RWTH Aachen
3. Ali Abdelshafy
Chair of Operations Management, RWTH Aachen
4. Grit Walther
School of Business and Economics, Chair of Operations Management, RWTH Aachen University

Abstract

The pressing challenge of climate change and the need to reduce the levels of anthropogenic carbon dioxide emissions (CO2) have made Carbon Capture and Storage (CCS) an increasingly critical area of research. CCS represents a vital technology in the pursuit of mitigating climate change impacts by capturing CO2 emissions at their source and storing them underground. Recognizing the importance of this technology, our study delves into the optimization of CCS infrastructure, specifically focusing on the integrated design of CO2 pipeline networks and the development of effective price policies. Through a bilevel model tailored for the CCS context, we examine the potential of price policies to enhance the efficiency of CO2 pipeline networks in Germany. Herein, our findings illuminate the dual nature of CCS: on one hand, it offers a pathway to lower CO2 prices for emitters, thus promoting environmental welfare. On the other hand, it encounters challenges in market design, particularly in addressing the complex issue of preventing monopolistic control by pipeline operators . Additionally, we recognize the 'distance-to-sink' effect as a significant barrier, disadvantaging emitters situated far from storage sites.

Keywords

Status: accepted

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